Finance & Fury Podcast

Welcome to Finance & Fury’s ‘Say What Wednesday’! Today’s question is from John; What are the tax implications of investing in shares, owning, holding, selling, dividends etc, does this vary to ETF, LIC etc? Is tax payable on the change in value year on year, or only when a profit or loss is realised? And does this change if they are held in a company or trust?   We’ll take a look at: Types of taxes Structures - Managed Funds, Shares, LICs and ETF Two types of taxes Income Tax – and Franking Credits depending on the investment Franking Credits (FC) – helps avoid a double taxation. Tax is paid at company level and then calculated alongside your personal tax to ensure tax isn’t being paid twice and that you’re paying tax on that income at your marginal tax rate rather than the company tax rate. Capital Gains tax   Income Tax Companies - Shares/LICS – Same thing really Shares/LICs pay dividends – the board sets the FC levels Shares – vary regarding dividends and franking credits LICs – Typically se